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Amendments to HPRP Program Agreements <br />January 4, 2011 <br />Page 2 <br />DISCUSSION <br />The American Recovery and Reinvestment Act of 2009 (Recovery Act) appropriated $1.5 billion for <br />communities to provide financial assistance and services to prevent individuals and families from <br />becoming homeless and to help those who are experiencing homelessness to be quickly re- <br />housed and stabilized. Santa Ana was allocated $2,831,989 under the terms of the funding <br />distribution formula established by the U S. Department of Housing and Urban Development <br />(HUD) for these programs, which are titled Homelessness Prevention and Rapid Re-Housing <br />(HPRP). <br />On September 8, 2009, City Council authorized the execution of agreements with nine local HPRP <br />non-profit sub-recipients to carry out HPRP services. On September 7, 2010, after one year of <br />operation, City Council authorized amendments with three sub-recipients to transfer funds between <br />programs and to expand HPRP services to better meet the needs of the community. <br />The HPRP program requires, by statute, that grantees expend 60% of their award funds within two <br />years of the date that HUD signed the grant agreement. Should a grantee be unable to meet this <br />requirement, HUD may recapture unused HPRP funds and reallocate them. Considering current <br />expenditure rates and projections as to whether each grantee will meet the requirement, staff and <br />sub-recipients have agreed upon the following adjustments to the HPRP allocations: <br />Organization <br />Original Allocation <br />Returning <br />Aids Services Foundation <br />Olive Crest <br />WISE Place <br />$170,000 <br />$468,444 <br />$145,000 <br />TOTAL Available for Reallocation <br />$73,000 <br />$103,000 <br />$40,000 <br />$216,000 <br />These returned funds will be re-allocated evenly to Interval House and Mercy House who have the <br />interest and ability to receive and spend additional funds. As of October 31, 2010, Interval House <br />has expended 41.55% of the Homelessness Prevention allocation and Mercy House has <br />expended 46.15% of its Homelessness Prevention allocation. <br />Due to the 60% deadline requirement less than a year away, staff is requesting that future <br />modification be authorized by the City Manager in order to address the need for program <br />modifications in a timely manner. <br />25A-2